Philips vs Matsushita
PHL-3100 International Management
April 11, 2015
Throughout History Philips and Matsushita have charted different strategies as well as different organizational structures, and the outcome has been the same; success. With success comes adversity and both companies’ experienced major challenges in the beginning of the 21st century. Both CEO’s were forced to implement organizational restructurings as well as new strategies. How they would come out of was unknown as well as if their competitive nature with each other would continue.
In 1892 Gerard Philips and his father founded a small light bulb company in Eindhoven Holland, ...view middle of the document...
Before they war they had transferred its assets into tow trust, British Phillips and North American Phillips, as well as moving its vital research to Surrey England. Philips was hit hard during World War II with most of their production plants bombed or destroyed management decided to build the post war organization on the strengths of the national organizations. By the 1960’s Philips ability to bring new products was starting to fail. Phillips headed into reorganization. Over the next four decades, seven chairman worked different ways to reorganize the company with little to now success. By 2009 Phillips financial performance was poor there were still questions to its global competiveness. Phillips was forced to license Funai to make and market all of its electronics under the Phillips name in the North America.
In 1918 Konosuke Matsushita invested to start production of double ended sprockets in his modes home. The investment expanded rapidly moving into battery-powered lamps, electric irons and radios. In 1932 Matsushita announces to his employees a 250 year corporate plan, broken down into 25 year segments that were to be carried out by successive generations. They plan was codified in the company creed and in the “Seven Spirts of Matsushita” and all new employees were trained on it. Post war boom, Matsushita flooded the market with new products, from television sets in 1952, transistor radios in 1958, color televisions, dishwashers and electric stoves in 1960, with over 5000 products the company opened 25,000 domestic retail outlets covering 40% of the market in Japan by the late 1960’. With slowing of the Japanese market the company look to export their products. Matsushita was forced into manufacturing plants in Southeast Asia as well as Central and South American to cut cost. By 1970 he was pressured to open plants in Canada in 1972 and in 1974 he bought Motorola’s Television business in the United States and in 1976 He built a plant in Wales to supply European Common Market.
With the growth of the VCR market Matsushita adopted the VHS standard and during the next 20 years of development Matsushita’s development team lived the VCR product cycle. Between 1977 and 1985 Matsushita’s increase VCR capacity by 33-fold to 6.8 million units, besides meeting their needs they were also meeting the needs of GE, RCA, Phillips and Zenith. With the increase in volume Matsushita was able to slash pre by 50% within five years of launch.
With a growing number of overseas companies, Matsushita was forced to move local nationals into key positions, for example in America, Americans because president in three of the six local companies. This was done to strengthen ties within the local companies as well as the host governments. ...